Acquisition creates discount giant

It’s a done deal.



Dollar Tree announced Monday that it has completed its acquisition of Family Dollar Stores, opening the doors to a $19 billion company with more than 13,000 stores.



Gary Philbin, 58, formerly president and COO of Dollar Tree, has been named to the same position at Family Dollar, effective immediately. In his new role, Philbin will continue to report to Bob Sasser, CEO of Dollar Tree.



Philbin joined Dollar Tree as senior VP stores in December 2001, and was later promoted to COO in March 2007 and to president in June 2013. Prior to joining Dollar Tree, Philbin held senior-level positions in both merchandising and operations during his 30 years in the retail grocery industry.



"We are pleased to announce we have completed our acquisition of Family Dollar and we formally welcome the Family Dollar team to the Dollar Tree organization," stated Bob Sasser, CEO. "[And] I am very proud to announce that Gary will be taking on his new leadership role of Family Dollar Stores," Sasser said. "Gary has played an integral role in the success of Dollar Tree over the past 14 years. Notably, Gary was instrumental in improving the Dollar Tree customer shopping experience and the related customer satisfaction, as well as leading the integration following our Canadian acquisition in 2010."



Under terms of the transaction, Family Dollar shareholders are entitled to receive $59.60 in cash and just under 0.25% of a share of Dollar Tree common stock for each share of Family Dollar stock held, for a total consideration of about $8.5 billion.



Additionally, the company announced that Howard Levine, CEO Family Dollar, has been appointed to Dollar Tree's board of directors, effective immediately.



The combined organization will operate more than 13,000 stores in 48 states and five Canadian provinces, with sales exceeding $19 billion annually. It intends to retain and to grow both banners going forward and will optimize the combined real estate portfolio.